Card fraud increases in Germany

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Credit card fraud increased significantly in Germany in 2021, according to a study by FICO.

Experts analyzed 7.5 million active payment cards issued in Germany and concluded that between September 2020 and September 2021, the number of fraud cases increased by 17%.

At the same time, the volume of purchases using payment cards for this period of time increased by only 5%. The number of card fraud attempts increased by 30%. And the total volume of authorized transactions increased by 8%.

The study showed that most often fraud occurs with transactions without the presence of a card (card not present transaction - CNP). These include online payments and cross-border payments.

CNP fraud is about 70% of all card fraud. At the same time, cross-border fraud accounts for 80%. It should be noted that most payment cards in Germany have a chip, and fraud on these cards accounts for only 10% of the total fraud.

According to the study, having obtained payment card data, fraudsters most often used the services of tour operators (16.1%), airlines (4.5%), and also paid for hotel rooms (3.1%).

As previously reported, about 32% of all payments using both contact and contactless cards comply with the EMV security standard developed by international payment systems.
 
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